Stock Investors Fall in Love Again

Individuals Rediscover Passion Following a Lackluster January, But Hedge-Fund Pros Grow Aloof

By E.S. BROWNING
Staff Reporter of THE WALL STREET JOURNAL
February 14, 2005

A lot of investors suddenly seemed to lose their passion for stocks last month, but now they may be putting some love back into the relationship....The first part of that trend can be seen in flows of fresh money into U.S. mutual funds. The inflows rose late last year, dried up when January hit, and then bounced back late in January. "In January, we estimate, U.S. stock funds got less money than did international funds," says Charles Biderman, chief executive of TrimTabs Investment Research in Santa Rosa, Calif., which tracks mutual-fund flows. On top of that, he says, Federal Reserve data show that instead of taking money out of savings to buy stocks, investors were increasing their savings. But now, he adds, "We have had inflows each of the past 10 days."

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